Denmark: 2023 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, June 26, 2023
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- Denmark: 2023 Article IV Consultation-Press Release; and Staff Report
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Bibliographic details
- Published: June 26, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400245954.002
Economic outlook and recent performance
- The Danish economy "recovered strongly from the pandemic."
- "Economic activity is set to soften in the first half of 2023, followed by a gradual recovery."
- "Gross domestic product growth is expected to slow in 2023."
Inflation, labor market, and risks
- "Strong output and employment growth has contributed to inflationary pressures."
- "Inflation will remain elevated in the near term."
- "Risks to growth are broadly balanced while upside risks dominate inflation."
- "Positive output gaps and high inflation are expected in the near term."
Fiscal policy guidance and assessment
- "Near-term fiscal policy should support disinflation, given persistently elevated inflation."
- There is "uncertainty regarding the contractionary effects assumed in the fiscal plan."
- "Medium-term fiscal policy should be recalibrated as needed to adhere to the fiscal rules."
- The "structural balance will weaken to a deficit over the medium term mainly due to defense and demographic-related spending."
Key thematic findings (concise)
- Recovery: impressive post-pandemic rebound in output and employment.
- Near-term trajectory: softening in H1 2023, gradual recovery thereafter.
- Inflation: elevated near term with upside risks predominating.
- Fiscal: near-term support for disinflation; medium-term recalibration to meet fiscal rules.
- Medium-term pressures: defense and demographic-related spending drive structural balance toward deficit.
Source: Denmark: 2023 Article IV Consultation-Press Release; and Staff Report, June 26, 2023.
Content in this bundle
- 1dnkea2023001